Question

Stellar Corporation had the following activities in 2020.

1. Payment of accounts payable $844,000
2. Collection of note receivable $97,000
3. Issuance of common stock $275,000
4. Issuance of bonds payable $469,000
5. Payment of dividends $380,000
6. Purchase of treasury stock $49,000
Compute the amount Stellar should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount

Answer 1

Net cash provided by financing activities $315,000

Step-by-step explanation:

The computation of the net cash provided or used by financing activities is shown below:

Issuance of common stock $275,000

Issuance of bonds payable $469,000

Less: Payment of dividends $380,000

Less: Purchase of treasury stock $49,000

Net cash provided by financing activities $315,000